income statements report what?

Answer 1

An Income Statement, also called a Profit and Loss Statement (P&L), is a financial statement for companies that indicates how Revenue (money received from the sale of products and services before expenses are taken out, also known as the "top line") is transformed into net income (the result after all revenues and expenses have been accounted for, also known as the "bottom line"). The purpose of the income statement is to show managers and investors whether the company made or lost money during the period being reported.

Answer 2

Well, this is a loaded question!

An Income Statement (aka Profit and Loss or Revenue and Expense Statements) will show exactly what you want it to show.

It could be as simple as three numbers...Income minus expenses equaling the net income. Or it could be as complex as showing every detail of the business including inventory, work in progress and investments.

And, of course if it is useful at all it will contain whatever the useful information is that is necessary to judge the performance of the business.

Think about that before you dismiss it. After all that is the only reason they came into existence.


I hope this helps.

Answer 3

Income statements report earnings in a specific time period. It not only shows what was earned but also the costs associated with earning that income.

Answer 4

The income statement is one of the major financial statements used by accountants and business owners. (The other major financial statements are the balance sheet, statement of cash flows, and thestatement of stockholders' equity.) The income statement is sometimes referred to as the profit and loss statement (P&L), statement of operations, or statement of income. The income statement shows revenues, expenses, gains, and losses; it does not show cash receipts (money you receive) nor cash disbursements (money you pay out). There are loads of good tutorials in Bluebook academy.

Answer 5

income, expense, profit or loss.